Trading ADA/USD should come with an extra warning label short term. The moves achieved by ADA/USD in the last week of trading have been nothing short of astonishing, and that is saying a lot because Cardano is one of many cryptocurrencies, but its violent fluctuations standout.
This past weekend, ADA/USD was trading at record highs as it received plenty of attention. Some influencers suggested Cardano may be an energy efficient cryptocurrency compared to the likes of Bitcoin. Technically, ADA/USD climbed from a value slightly beneath the 1.600000 level on the 12th of May towards its high water marks on the 16th of the month. The ability to climb higher and make all-time values was curious because the broad cryptocurrency market was already starting to show it was running into bearish headwinds.
Yesterday’s price action in ADA/USD highlights the magnitude of Cardano’s volatility. ADA/USD was trading above the two-dollar mark early yesterday, only to see its value crash and trade below the one-dollar juncture for a brief moment. As of this writing, ADA/USD is traversing near the 1.640000 level, which also shows a dynamic ability to reverse. In other words, traders need to be ready for all scenarios when they speculate on ADA/USD because it can move fast and crack like a whip.
Current resistance for ADA/USD appears to be around the 1.740000 level, while support is near the 1.570000 vicinity. Cardano continues to show it has the energy to trade fast and speculators are urged to use limit orders if they are curious enough to wager on ADA/USD’s direction short term. If values near the current resistance levels do not get seriously tested, it may indicate that bearish sentiment remains strong in ADA/USD and another leg down may develop.
After achieving record highs only a handful of days ago, ADA/USD is correlating to the broad cryptocurrency market. Bearish sentiment is prevalent and even though the price of ADA/USD was near 2.450000 on the 16th of May, the value of Cardano is now testing important mid-term support levels. If the 1.580000 juncture is broken lower, another flush of speculative selling may be exhibited quickly in ADA/USD. Cautious traders should consider selling ADA/USD if resistance levels look durable and use short reversals higher as a way to activate short positions.
Cardano Short-Term Outlook:
Current Resistance: 1.743000
Current Support: 1.576000
High Target: 1.850000
Low Target: 1.312000
